Airute "Incorporated as Affiliate of Woojin Gijeon... Benefiting from Semiconductor Boom and Renewable Energy Activation"

[Asia Economy Reporter Hyunseok Yoo] A-Root has incorporated Woojin Gijeon, an industrial power integrated platform company that supplies power equipment and provides solution engineering to front industries such as semiconductors, displays, and renewable energy, as an affiliate. Woojin Gijeon is expected to experience high growth due to the global semiconductor boom and government policies promoting renewable energy.

A-Root announced on the 24th that it has acquired all of the 30.07% stake in Woojin Holdings held by its subsidiary ‘Gionics’. Since Woojin Holdings owns 100% of Woojin Gijeon’s shares, becoming the largest shareholder of Woojin Holdings means securing management rights of Woojin Gijeon.

Last December, A-Root participated as a subordinated investor in a private equity fund that acquired convertible bonds (CB) issued by Woojin Holdings, securing a call option to purchase all the CBs. Exercising this call option enables A-Root to secure management rights of Woojin Gijeon.

Woojin Gijeon not only supplies high value-added power equipment (UPS, AVC, digital protective relays) but also provides consulting, design, installation, and after-sales services. It has over 300 clients, including major corporations such as Samsung, SK, LG, and Hyundai, in the semiconductor, display, construction, and renewable energy sectors.

An A-Root official stated, “After reviewing various options to secure the company’s future growth engine, we highly evaluated Woojin Gijeon’s market competitiveness and future growth potential and decided to directly incorporate Woojin Gijeon as an affiliate.”

He added, “Woojin Gijeon is the top domestic industrial power equipment integrated platform company with excellent technology and engineering capabilities, and there is virtually no competitor in the domestic market. Its cash generation ability is outstanding, recording an average annual EBITA (Earnings Before Interest, Taxes, and Amortization) of over 30 billion KRW for the past five years. Moreover, growth potential is high due to the global semiconductor boom and the activation of the renewable energy industry.”

Market research firm IC Insights projected a 24% growth rate in the semiconductor market this year compared to last year. In particular, as Samsung Electronics and SK Hynix expand their investments, Woojin Gijeon’s sales are expected to increase. Alongside semiconductors, the renewable energy business also holds high expectations for growth in line with the government’s ‘Renewable Energy 3020 Implementation Plan.’